(Updates trading, adds comments, bylines)
NEW YORK, March 10 The euro jumped to a fresh
three-week high against the dollar on Friday on a report that
the European Central Bank had discussed the possibility of
raising interest rates before the end of its quantitative easing
Sources told Reuters some ECB policy makers had suggested
hiking rates from their current record lows before the end of QE
stimulus, but that the discussion was brief, and there was not
broad support for the idea.
The euro rose as high as $1.0670 against the dollar,
its strongest since Feb 17. It was last at $1.0660, up 0.8
Investors were split on what the ECB discussion could mean.
"It's a bit odd that you would continue to ease with QE and
hike rates at the same, so we're struggling to understand this a
bit," said Rabobank strategist Lyn Graham-Taylor.
The dollar index, which tracks the greenback against
six major world currencies, fell to a fresh session low of
101.380 following the report.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Bernadette